50-46-304. (Subsection (1)(b) effective July 1, 2020, or on occurrence of contingency, whichever is earlier) Department responsibility to monitor and assess medical marijuana production, testing, and sales -- license revocation. (1) The department shall implement a system for tracking marijuana, marijuana concentrate, and marijuana-infused products from either the seed or the seedling stage until the marijuana, marijuana concentrate, or marijuana-infused product is sold to a registered cardholder. The system must:

(a) ensure that the marijuana, marijuana concentrate, or marijuana-infused product cultivated, manufactured, possessed, and sold under this part is not sold or otherwise provided to an individual who is not authorized under this part to possess the item;

(b) be capable of notifying providers and marijuana-infused products providers, before a sale is made, of the amount of usable marijuana a registered cardholder may purchase before reaching the maximum amount of usable marijuana allowed under this part; and

(c) be made available to providers, marijuana-infused products providers, dispensaries, and testing laboratories at no additional cost.

(2) The department shall assess applications for a provider or marijuana-infused products provider license to determine if a person with a financial interest in the applicant meets any of the criteria established in 50-46-308(3) for denial of a license.

(3) The state laboratory shall assess applications for and monitor the operations of testing laboratories to ensure that:

(a) a person with a financial interest in the laboratory is complying with the requirements of 50-46-311(4); and

(b) an owner or employee is not in violation of 50-46-311(6).

(4) Before issuing or renewing a license, the department shall inspect the proposed registered premises of a provider or marijuana-infused products provider and the state laboratory shall inspect the property to be used by a testing laboratory to ensure an applicant for licensure or license renewal is in compliance with this part. The department or state laboratory may not issue or renew a license if the applicant does not meet the requirements of this part.

(5) The department shall develop a tiered licensing system for providers and marijuana-infused products providers in accordance with 50-46-305.

(6) The state laboratory shall establish and enforce standard operating procedures and testing standards for testing laboratories to ensure that cardholders receive consistent and uniform information about the potency and quality of the marijuana and marijuana-infused products they receive. The state laboratory shall:

(a) consult with independent national or international organizations that establish testing standards for marijuana and marijuana-infused products;

(b) require testing laboratories to follow uniform standards and protocols for the samples accepted for testing and the processes used for testing the samples; and

(c) track and analyze the raw data for the results of testing conducted by testing laboratories to ensure that the testing laboratories are providing consistent and uniform results.

(7) If the analysis of raw testing data indicates that licensees are providing test results that vary among testing laboratories by an amount determined by the state laboratory by rule, the department shall investigate the inconsistent results and determine within 60 days the steps the testing laboratories must take to ensure that each testing laboratory provides accurate and consistent results.

(8) If the analysis of raw testing data indicates a testing laboratory may be providing inconsistent results, the state laboratory shall suspend the testing laboratory's license until additional testing determines whether the results are consistent.

(9) The state laboratory shall revoke a testing laboratory's license upon a determination that the laboratory is:

(a) providing test results that are fraudulent; or

(b) providing test results without having:

(i) the equipment needed to test marijuana, marijuana concentrates, or marijuana-infused products; or

(ii) the equipment required under this part to conduct the tests for which the laboratory is providing results.

(10) A revocation under this section is subject to judicial review.

History: En. Sec. 7, Ch. 292, L. 2019, and Sec. 1, Ch. 411, L. 2019.